MARK 220 – PRINCIPLES OF MARKETING

Study Guide for Midterm

Your midterm exam is closed book and will consist of multiple choice questions, short questions and essay
questions.

The questions will be based on chapters 1 through 6 and chapter 15 in the textbook, your class notes and the two
assigned Harvard Business Review articles (Principles of Persuasion and Marketing Malpractice).

The questions will involve explaining terms, applications of concepts, outlining of some approach to a
challenge, and the like.

You should bring a calculator.

Focus your studying on the following topics:

Chapter 1 – Creating and Capturing Consumer Value

o What is marketing?
o Outline the steps in the marketing process.
o The concept of needs, wants, demand, and market
o The different marketing management orientations that guide marketing strategy:
production/product/selling/marketing/societal marketing
o The 4 P’s of the marketing mix: product, promotion, price and place
o Customer-perceived value
o Customer satisfaction
o Value from the firm perspective:
o Loyalty
o Customer lifetime value (concept and how to compute)
o Share of customer (or share of wallet)

Chapter 2 – Company and Marketing Strategy

o The main steps of a company-wide strategic planning
o What is a mission statement?
o Characteristics of a meaningful mission statement
o What is marketing myopia?
o Differentiate between product-oriented and market-oriented business definitions
o Analyzing the business portfolio: the Boston Consulting Group matrix (main purpose and limitations)
o 4 growth strategies: market penetration, product development, market development, and diversification
(how they grow revenues and examples)
o Situational analysis: the SWOT analysis
o Setting marketing objectives (examples of different types of marketing objectives)
o The 3 elements of a customer-driven marketing strategy:
o Dividing the Market (segmenting)
o Selecting customers to serve (targeting)
o Market differentiation and positioning (positioning)
o Net marketing contribution (how to compute)
o Return on marketing investment (how to compute)
Chapter 3 – Analyzing the Marketing Environment
o The main actors in the company microenvironment
o Explain and give specific examples of macroenvironment influences on Marketing : demographic,
economic, technological, social, political and cultural influences

Chapter 4 – Marketing Research

o Three sources of data for the marketing information system: internal data, marketing intelligence and
marketing research (explain and provide examples of each)
o Differentiate between secondary vs. primary research
o Three main types of research: exploratory, descriptive and causal (experimental): explain differences
and provide examples.
o Projective techniques: explain and provide examples
o Observational research: explain and provide examples (human and mechanic observation)
o Types of probabilistic vs. nonprobabilistic sampling
o What is CRM? Why companies invest in CRM?
o What is data mining?
o What are some problems with CRM from a customer perspective?

Chapters 5 – Buyer Behavior

o Explain and provide examples of factors influencing consumer behavior
o Cultural factors
o Social factors
o Personal
o Psychological
o Situational
o The concept of opinion leaders
o Brand ambassadors (strategic benefits for the firm)
o The 5 stages of the decision-making process: problem/need recognition, information search, evaluation
of alternatives, choice, and postpurchase evaluations
o What is a heuristic? Examples
o Customer satisfaction
o Cognitive dissonance
o Benefits of customer loyalty
o Business markets:
o Main differences between the business to business market and the consumer market
o The buying center (concept and key roles of individuals in the buying center)

Chapter 6 – Marketing Strategy (pages172 to 185)

o The four major steps in designing a customer-driven marketing strategy: segmentation, targeting,
differentiation and positioning
o Market Segmentation (describe and provide examples)
o Geographic
o Demographic
o Psychographic
o Behavioral
o Using multivariate segmentation systems: PRIZM systems by Nielsen Claritas
o Requirements for effective segmentation
Chapter 15 – Global Marketing
o Evaluating the global marketing environment: international trade system, economic environment,
political-legal environment, and cultural environment (briefly explain and provide examples of these
influences)
o Explain reasons for firms going global
o Market entry strategies:
o Exporting
o Joint venturing: licensing, contract manufacturing, management contracting, joint ownership
o Direct investment
o Deciding on the global marketing program: standardization vs. localization
o Product decision
o Promotion decisions
o Price decisions
o Place/distribution decisions

Articles:

1) Principles of Persuasion
a. Explain each principle
b. Discuss applications

2) Marketing Malpractice
a. Explain some problems of market segmentation
b. Wrong target.
c. Discuss what type of segmentation the authors suggest
d. Job segmentation